The proper corporate management structure will allow you to run your business efficiently. A business must decide which structure is best suited to its business goals and industry. It should also review its current structure and make any needed adjustments. Any changes must be made known to the employees, especially when the company is undergoing restructuring. In the wrong circumstances, it could result in employee cynicism.
The top level of a corporation is made up of the board and executive officers including the chief executive (CEO). The CEO is accountable for the day-to-day activities of a business and has the authority to oversee all legal business activities. The shareholders also play an important part in the corporate structure even although they aren’t directly involved in the day-to-day business operations. They are responsible for budgets and have the power to vote on major decisions.
Below the board of directors are the staff managers and work with top-level executives to implement policy. Staff managers can be divided into functional departments. This allows each department to operate independently and increase efficiency. They can also be grouped in divisional departments. This is ideal for businesses with multiple products and need to respond quickly to market shifts.
A circular structure is similar to an organizational and divisional structure however, instead of having the chain of command run vertically, it is run horizontally between departments. It is a good way to improve collaboration and communication between departments. It can also help build trust among employees and foster a team-oriented culture.